Hammond Corporation reported the following operating results for two consecutive years.

Required
a. Compute the percentage changes in Hammond Corporation's income statement components between the two years.
b. Comment on apparent trends disclosed by the percentage changes computed in Requirementa.

Transcribed Image Text:

2008 2007 Percentage Change Sales Cost of goods sold Gross margin Operating expenses Income before taxes Income taxes Net income $1250,000 $1,000,000 600,000 400,000 200,000 200,000 53,000 $ 139,000 147,000 750,000 500,000 300,000 200,000 61,000